providing genuine satisfaction to each of our customers in ... · the 8th-generation model. all...

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09 Global Super Cub production reaches 50 million units Honda developed the Super Cub and released it in 1958 with the aim of producing a bike that anyone, including women, could easily ride. Two-stroke engines dominated the market at the time, but Honda equipped the Super Cub with a four-stroke engine for its high power output and superior fuel efficiency. This and many other technological innovations, such as the extensive use of plastic parts for reduced body weight, made the practical, convenient Super Cub a huge and lasting hit. Constantly striving to enhance customer satisfaction, Honda has refined every aspect of the Super Cub, including engine performance, design, ease of riding and use, durability and economy. The Super Cub, now manufactured in 13 countries, has won loyal fans in over 160 countries. By 2005, cumulative global production of the Super Cub had reached 50 million units. The first Super Cub Super Cub 50 today In 1947, at a time when bicycles were as much a means of transporting goods as a mode of personal transportation, Soichiro Honda developed and launched his first product: the A-Type auxiliary engine, attached to bicycles. Driven by the desire to make personal transport more comfortable and convenient, he founded Honda Motor Co., Ltd. in 1948, and Honda introduced its first motorcycle, the Dream D, in 1949. By 2005, Honda Motor Co., Ltd. had produced a total of 150 million motorcycles worldwide. The recent boom in motorcycle production and sales throughout Asia has boosted annual output to more than 10 million bikes, as more and more people recognized the convenience and affordability of Honda products. Honda has continued to grow, developing in accordance with the policy of manufacturing close to the customer. Honda now manufactures products ranging from motorcycles and automobiles to power products such as generators and marine outboards. By acting as a good corporate citi- zen in local communities, Honda has won fans and earned trust wherever it has established a presence. Throughout today’s world, Honda is striving to become a company that society wants to exist. Providing genuine satisfaction to each of our customers in all of the regions of the world Highlights P r i m a r y B u s i n e s s

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Page 1: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1009

Community Forests for the 21st Century:putting down roots in communitiesworldwide

A company that has expanded and established factories and

research and development facilities throughout Japan and the

world, Honda began in 1976 to foster a new kind of growth

with the Community Forests initiative. This program is intended

to help restore and maintain the natural ecosystem surrounding

each Honda facility through the planting of groves of indigenous

trees. The original inspiration came from the image of a grove

of trees in an ancient Japanese village shrine. Moving into the

21st century, the scope of the project has grown to encompass

environmental education, community-relations initiatives and

other activities. Honda is sowing the seeds of long-term success,

growing gradually in harmony with our surroundings and local

communities.

Global Super Cub production reaches 50 million units

Honda developed the Super Cub and released it in 1958 with the

aim of producing a bike that anyone, including women, could

easily ride. Two-stroke engines dominated the market at the time,

but Honda equipped the Super Cub with a four-stroke engine

for its high power output and superior fuel efficiency. This and

many other technological innovations, such as the extensive use

of plastic parts for reduced body weight, made the practical,

convenient Super Cub a huge and lasting hit. Constantly striving

to enhance customer satisfaction, Honda has refined every aspect

of the Super Cub, including engine performance, design, ease

of riding and use, durability and economy. The Super Cub, now

manufactured in 13 countries, has won loyal fans in over 160

countries. By 2005, cumulative global production of the Super

Cub had reached 50 million units.

The 8th-generation Civic:delivering on the promise of value

Honda began developing the Civic in 1970, at a time when Japa-

nese society was rapidly urbanizing and becoming more focused

on the automobile. The aim was to create a vehicle of optimal

size, performance and economy, while still providing sufficient

interior space for a comfortable ride. Introduced in 1972 as

“the citizen’s car”, the original Civic featured several important

innovations, including front-engine/front-wheel drive, four-

wheel independent suspension, an overhead cam engine and

a unique trapezoidal platform. By the time the Civic reached its

7th generation, global production had reached 16 million units.

In September 2005, the Civic evolved again, with the debut of

the 8th-generation model. All 8th-generation Civics, including

the hybrid version, are equipped with Honda’s most advanced

technology and equipment. They feature Honda’s innovative

one-motion profile, enhanced handling and ample interior space.

The Civic continues to embody Honda’s commitment to deliver

genuine value to customers worldwide.The first Super Cub

Super Cub 50 today

In 1947, at a time when bicycles were as much a means of

transporting goods as a mode of personal transportation,

Soichiro Honda developed and launched his first product:

the A-Type auxiliary engine, attached to bicycles. Driven by

the desire to make personal transport more comfortable

and convenient, he founded Honda Motor Co., Ltd. in

1948, and Honda introduced its first motorcycle, the

Dream D, in 1949. By 2005, Honda Motor Co., Ltd. had

produced a total of 150 million motorcycles worldwide.

The recent boom in motorcycle production and sales

throughout Asia has boosted annual output to more than

10 million bikes, as more and more people recognized the

convenience and affordability of Honda products. Honda

has continued to grow, developing in accordance with

the policy of manufacturing close to the customer. Honda

now manufactures products ranging from motorcycles

and automobiles to power products such as generators

and marine outboards. By acting as a good corporate citi-

zen in local communities, Honda has won fans and earned

trust wherever it has established a presence. Throughout

today’s world, Honda is striving to become a company

that society wants to exist.

Providing genuine satisfaction

to each of our customers

in all of the regions of the world

Ongoing afforestation

Civic Hybrid

The extended Civic family

Highlights HighlightsPrimary Business

Page 2: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1009

Community Forests for the 21st Century:putting down roots in communitiesworldwide

A company that has expanded and established factories and

research and development facilities throughout Japan and the

world, Honda began in 1976 to foster a new kind of growth

with the Community Forests initiative. This program is intended

to help restore and maintain the natural ecosystem surrounding

each Honda facility through the planting of groves of indigenous

trees. The original inspiration came from the image of a grove

of trees in an ancient Japanese village shrine. Moving into the

21st century, the scope of the project has grown to encompass

environmental education, community-relations initiatives and

other activities. Honda is sowing the seeds of long-term success,

growing gradually in harmony with our surroundings and local

communities.

Global Super Cub production reaches 50 million units

Honda developed the Super Cub and released it in 1958 with the

aim of producing a bike that anyone, including women, could

easily ride. Two-stroke engines dominated the market at the time,

but Honda equipped the Super Cub with a four-stroke engine

for its high power output and superior fuel efficiency. This and

many other technological innovations, such as the extensive use

of plastic parts for reduced body weight, made the practical,

convenient Super Cub a huge and lasting hit. Constantly striving

to enhance customer satisfaction, Honda has refined every aspect

of the Super Cub, including engine performance, design, ease

of riding and use, durability and economy. The Super Cub, now

manufactured in 13 countries, has won loyal fans in over 160

countries. By 2005, cumulative global production of the Super

Cub had reached 50 million units.

The 8th-generation Civic:delivering on the promise of value

Honda began developing the Civic in 1970, at a time when Japa-

nese society was rapidly urbanizing and becoming more focused

on the automobile. The aim was to create a vehicle of optimal

size, performance and economy, while still providing sufficient

interior space for a comfortable ride. Introduced in 1972 as

“the citizen’s car”, the original Civic featured several important

innovations, including front-engine/front-wheel drive, four-

wheel independent suspension, an overhead cam engine and

a unique trapezoidal platform. By the time the Civic reached its

7th generation, global production had reached 16 million units.

In September 2005, the Civic evolved again, with the debut of

the 8th-generation model. All 8th-generation Civics, including

the hybrid version, are equipped with Honda’s most advanced

technology and equipment. They feature Honda’s innovative

one-motion profile, enhanced handling and ample interior space.

The Civic continues to embody Honda’s commitment to deliver

genuine value to customers worldwide.The first Super Cub

Super Cub 50 today

In 1947, at a time when bicycles were as much a means of

transporting goods as a mode of personal transportation,

Soichiro Honda developed and launched his first product:

the A-Type auxiliary engine, attached to bicycles. Driven by

the desire to make personal transport more comfortable

and convenient, he founded Honda Motor Co., Ltd. in

1948, and Honda introduced its first motorcycle, the

Dream D, in 1949. By 2005, Honda Motor Co., Ltd. had

produced a total of 150 million motorcycles worldwide.

The recent boom in motorcycle production and sales

throughout Asia has boosted annual output to more than

10 million bikes, as more and more people recognized the

convenience and affordability of Honda products. Honda

has continued to grow, developing in accordance with

the policy of manufacturing close to the customer. Honda

now manufactures products ranging from motorcycles

and automobiles to power products such as generators

and marine outboards. By acting as a good corporate citi-

zen in local communities, Honda has won fans and earned

trust wherever it has established a presence. Throughout

today’s world, Honda is striving to become a company

that society wants to exist.

Providing genuine satisfaction

to each of our customers

in all of the regions of the world

Ongoing afforestation

Civic Hybrid

The extended Civic family

Highlights HighlightsPrimary Business

Page 3: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

Honda ASV-3 (motorcycle / automobile)

Honda Motorcycle Airbag (deployed)

Sharing knowledge around the world:traffic safety programs in the Philippines

Honda has long been involved in traffic safety programs and

support activities, especially in Asia, where road infrastructure and

education for riders acquiring motorcycle licenses has presented

challenges. Honda currently has traffic safety programs in place

in 21 countries, including Japan. Nineteen facilities in 13 countries

are working to foster safety around the world through dealership-

based driver safety promotion and other activities.

As part of these efforts, Honda’s motorcycle and automobile

affiliates in the Philippines, Honda Philippines Inc. and Honda

Cars Philippines Inc., introduced the TeenSMART program at Don

Bosco high school in October 2005. TeenSMART is designed to

give novice drivers the advanced, real-world skills they need to

drive safely and avoid accidents, and focuses on high school stu-

dents who have not yet obtained their driver’s licenses. Students

attend lectures on traffic laws and the behavior of other drivers,

and participate in hands-on riding safety clinics on the school

grounds. In 2006, the program is being expanded to include

more high schools in metropolitan areas where accident rates

remain high.

Teaching traffic rules to children:Traffic Safety Caravan

To protect children from traffic accidents, it is important to start

teaching them the basics of traffic safety from infancy, as this

period has a major influence on their development. The Traffic

Safety Caravan is a hands-on traffic safety program for preschool-

aged children. The Honda-developed traffic safety education

program known as Ayatorii* Hiyoko is used to explain road safety

rules with images, which are presented in a fun way by specialized

trainers. The program includes interactive experiences for kids

using miniature traffic signals and crosswalks. In 2005 the caravan

visited 340 kindergartens and nursery schools in communities in

Japan that host Honda facilities.

Respect for the individual, a basic principle of Honda’s corpo-

rate philosophy, leads us to treat safety as a prerequisite of

mobility. That’s why enhancing the safety performance of our

products has always been an objective of vital importance in

our research and development. Different countries each have

their own safety standards. We have always worked hard not

just to comply with them, but to exceed them—and to lead

the way in developing groundbreaking safety technologies.

In the 1970s traffic injuries and fatalities rose dramatically.

In response, Honda accelerated its R&D on safety technolo-

gies, and in the 1980s introduced the first Japanese-made

automobile with ABS and SRS airbags. We have also been

a leader in implementing advanced safety technologies on

our motorcycles. Today, we continue to equip our products

with advanced, intelligent technologies that help ensure

the safety not only of vehicle occupants, but also of cyclists

and pedestrians—everyone who uses the roads.

In addition to making vehicles even safer, we are also taking

positive steps to address the human factor through driver

safety education. The Honda Driving Safety Promotion

Center, established in 1970, serves as a focus for these

initiatives. Currently we have programs in place in Japan

and 20 other countries worldwide. In 1974 we founded

the International Association of Traffic and Safety Sciences,

which is mandated to help resolve traffic-related issues.

Through these and related activities, we are working hard

to achieve a safer, happier and more mobile society for us

all.

It is estimated that 70% of automobile collisions involving serious

injury or fatality are caused by delays in cognition such as when

the driver is not focusing sufficient attention on the road. In order

to improve traffic safety, therefore, it is necessary to deploy not

only technologies that minimize any injuries caused by a collision,

but also technologies that prevent collisions from occurring in the

first place. In 1991, Honda began contributing to the Advanced

Safety Vehicle Project (ASV) under the auspices of the Japanese

Ministry of Land, Infrastructure and Transport. Its third phase,

ASV-3 (April 2001–March 2006) saw the introduction of Honda

ASV-3 vehicles equipped to exchange positional information with

other vehicles using Inter-Vehicle Communication technology.

ASV-3 vehicles are also equipped with several new advanced

safety technologies developed by Honda: a system that uses cam-

eras and radar to provide drivers with information on approaching

vehicles and obstacles in the road; a system that offers driver

support through steering- and brake-assist technologies; and an

emergency response system designed to facilitate rescue efforts in

the event of an accident. Honda is continuing this research with a

view to offering some of these technologies in future production

vehicles.

A world’s first for a production vehicle:the Honda Motorcycle Airbag System

In most frontal collisions involving a motorcycle, the rider is thrown

from the vehicle by the impact and strikes either the other vehicle

or the road surface. Honda began work on the development of

a motorcycle airbag to protect the rider as much as possible. By de-

veloping advanced computer simulation technology and conduct-

ing motorcycle crash tests at its indoor omni-directional Real World

Crash Test Facility using motorcycle rider test dummies, Honda has

gathered and analyzed a wide array of data on the demeanor of

motorcycles during collisions. We applied the expertise gained in

developing automobile airbags, then went beyond to resolve some

of the challenges specific to motorcycle collisions, and developed

the first motorcycle airbag. The system is scheduled for introduction

on the new Gold Wing motorcycle in the US in 2006.

Advanced Safety Vehicles—the next generation of safety systems

* Ayatorii is derived from a Japanese acronym meaning ‘simple explanations for traffic safety awareness’. The Hiyoko edition is for preschoolers.

Safety Initiatives

Working to make people and cars even safer.

Creating the mobile society of our dreams.

HighlightsHighlights

1211

Page 4: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

Honda ASV-3 (motorcycle / automobile)

Honda Motorcycle Airbag (deployed)

Sharing knowledge around the world:traffic safety programs in the Philippines

Honda has long been involved in traffic safety programs and

support activities, especially in Asia, where road infrastructure and

education for riders acquiring motorcycle licenses has presented

challenges. Honda currently has traffic safety programs in place

in 21 countries, including Japan. Nineteen facilities in 13 countries

are working to foster safety around the world through dealership-

based driver safety promotion and other activities.

As part of these efforts, Honda’s motorcycle and automobile

affiliates in the Philippines, Honda Philippines Inc. and Honda

Cars Philippines Inc., introduced the TeenSMART program at Don

Bosco high school in October 2005. TeenSMART is designed to

give novice drivers the advanced, real-world skills they need to

drive safely and avoid accidents, and focuses on high school stu-

dents who have not yet obtained their driver’s licenses. Students

attend lectures on traffic laws and the behavior of other drivers,

and participate in hands-on riding safety clinics on the school

grounds. In 2006, the program is being expanded to include

more high schools in metropolitan areas where accident rates

remain high.

Teaching traffic rules to children:Traffic Safety Caravan

To protect children from traffic accidents, it is important to start

teaching them the basics of traffic safety from infancy, as this

period has a major influence on their development. The Traffic

Safety Caravan is a hands-on traffic safety program for preschool-

aged children. The Honda-developed traffic safety education

program known as Ayatorii* Hiyoko is used to explain road safety

rules with images, which are presented in a fun way by specialized

trainers. The program includes interactive experiences for kids

using miniature traffic signals and crosswalks. In 2005 the caravan

visited 340 kindergartens and nursery schools in communities in

Japan that host Honda facilities.

Respect for the individual, a basic principle of Honda’s corpo-

rate philosophy, leads us to treat safety as a prerequisite of

mobility. That’s why enhancing the safety performance of our

products has always been an objective of vital importance in

our research and development. Different countries each have

their own safety standards. We have always worked hard not

just to comply with them, but to exceed them—and to lead

the way in developing groundbreaking safety technologies.

In the 1970s traffic injuries and fatalities rose dramatically.

In response, Honda accelerated its R&D on safety technolo-

gies, and in the 1980s introduced the first Japanese-made

automobile with ABS and SRS airbags. We have also been

a leader in implementing advanced safety technologies on

our motorcycles. Today, we continue to equip our products

with advanced, intelligent technologies that help ensure

the safety not only of vehicle occupants, but also of cyclists

and pedestrians—everyone who uses the roads.

In addition to making vehicles even safer, we are also taking

positive steps to address the human factor through driver

safety education. The Honda Driving Safety Promotion

Center, established in 1970, serves as a focus for these

initiatives. Currently we have programs in place in Japan

and 20 other countries worldwide. In 1974 we founded

the International Association of Traffic and Safety Sciences,

which is mandated to help resolve traffic-related issues.

Through these and related activities, we are working hard

to achieve a safer, happier and more mobile society for us

all.

It is estimated that 70% of automobile collisions involving serious

injury or fatality are caused by delays in cognition such as when

the driver is not focusing sufficient attention on the road. In order

to improve traffic safety, therefore, it is necessary to deploy not

only technologies that minimize any injuries caused by a collision,

but also technologies that prevent collisions from occurring in the

first place. In 1991, Honda began contributing to the Advanced

Safety Vehicle Project (ASV) under the auspices of the Japanese

Ministry of Land, Infrastructure and Transport. Its third phase,

ASV-3 (April 2001–March 2006) saw the introduction of Honda

ASV-3 vehicles equipped to exchange positional information with

other vehicles using Inter-Vehicle Communication technology.

ASV-3 vehicles are also equipped with several new advanced

safety technologies developed by Honda: a system that uses cam-

eras and radar to provide drivers with information on approaching

vehicles and obstacles in the road; a system that offers driver

support through steering- and brake-assist technologies; and an

emergency response system designed to facilitate rescue efforts in

the event of an accident. Honda is continuing this research with a

view to offering some of these technologies in future production

vehicles.

A world’s first for a production vehicle:the Honda Motorcycle Airbag System

In most frontal collisions involving a motorcycle, the rider is thrown

from the vehicle by the impact and strikes either the other vehicle

or the road surface. Honda began work on the development of

a motorcycle airbag to protect the rider as much as possible. By de-

veloping advanced computer simulation technology and conduct-

ing motorcycle crash tests at its indoor omni-directional Real World

Crash Test Facility using motorcycle rider test dummies, Honda has

gathered and analyzed a wide array of data on the demeanor of

motorcycles during collisions. We applied the expertise gained in

developing automobile airbags, then went beyond to resolve some

of the challenges specific to motorcycle collisions, and developed

the first motorcycle airbag. The system is scheduled for introduction

on the new Gold Wing motorcycle in the US in 2006.

Advanced Safety Vehicles—the next generation of safety systems

* Ayatorii is derived from a Japanese acronym meaning ‘simple explanations for traffic safety awareness’. The Hiyoko edition is for preschoolers.

Safety Initiatives

Working to make people and cars even safer.

Creating the mobile society of our dreams.

HighlightsHighlights

1211

Page 5: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1413

Honda FC Stack

Manufacturing solar cells for cleaner energy

Honda began developing solar energy technology as part of its

program to optimize energy savings and reduce automobile-related

air pollution. A non-silicon solar cell was chosen for development

as its manufacture produces less CO2 and consumes approximately

50% less energy than conventional silicon solar cells. Superior pho-

toelectric conversion rates have also been achieved.

Honda’s first step in the practical application of this new type of

solar cell was taken in the spring of 2002 when they were put into

use at twelve research facilities and factories in Japan and three

overseas locations. Valuable data was collected under a variety

of conditions. The next step begins this year: starting in the latter

half of 2006, sales will be launched in a limited area. Then, in

2007, commercial production is scheduled to begin at Honda’s

Kumamoto Factory.

The development of solar cells is not only about creating a

clean energy source. It is also about creating hydrogen, which is

indispensable for the proliferation of fuel cell vehicles. The aim

is widely distributed power generation stations that use solar

cells for hydrogen production. With a vision that extends both to

creating the ultimate clean car and a clean source of energy to

serve as its fuel, the Honda Group is working to make good on its

commitment to the environment.

The Joyful Forest Project:planting hope in the Chinese desert

The Joyful Forest Project is a massive, 30-year undertaking in the

Korchin Desert, within the Autonomous Region of Mongolia in the

People’s Republic of China. Its goal is to use afforestation and agri-

culture to reclaim habitable areas so that people and nature can

productively coexist. The project, which is based on a partnership

between the Desert Planting Volunteer Association and Honda,

began in 2000 with the participation of the local community. To

date approximately 67,000 trees have been planted. In addition

to Honda’s financial support and operational planning, Honda

associates, retirees and their families voluntarily participate in tree-

planting tours. Their objective is to increase awareness among local

school children of the importance of such a collaborative afforesta-

tion effort. But the Joyful Forest Project isn’t just about helping

people plant trees. It’s about transcending national boundaries and

fulfilling our commitment to the next generation.

Fuel cell vehicles:aiming for the ultimate clean car

Fuel cell vehicles are powered by electric motors that run on

electricity generated by the chemical reaction between hydrogen

and oxygen. They use no gasoline, generate no CO2 emissions

and emit only water; they are perhaps the ultimate clean cars.

In 1999 Honda introduced experimental FCX cars equipped with

two different types of fuel cells. It then pursued improvements

in practicality and range. In 2002 Honda acquired certification

from the Japanese Ministry of Land, Infrastructure and Transport.

In the same year, it became the first to receive US government

certification for a fuel cell vehicle. Fuel cell vehicles were delivered

simultaneously to both the Japanese Cabinet Office and the City

of Los Angeles in December of that year.

The Honda FC Stack, a next-generation fuel cell that can operate

at -20°C, was introduced in 2003. June 2005 witnessed the

world’s first leasing of an FCX fuel cell vehicle to an individual cus-

tomer in the US, and Honda continues to make steady advances

toward the large-scale commercialization of fuel cell vehicles.

Since the development of the Civic CVCC engine, Honda has

embraced the challenge of improving combustion technology for

gasoline engines. It has also developed an array of clean power

trains and automobiles, including electric cars, natural gas-

powered cars and hybrids. Honda will continue to move forward

toward cleaner mobility.

Korchin Desert

Next-generation, thin-membrane solar cell panels on Honda’s Wako Building

First Honda FCX leased

to an individual

Two-stroke engines were once the norm in the motorcycle

industry. Then Honda introduced four-stroke engines that

generated less exhaust, delivered superior fuel efficiency

and had a smaller environmental footprint. This is but

one example of how, from early on, Honda developed

environment-friendly products in response to the de-

mands of the day. In the US in the 1960s and in Japan in

the 1970s, air pollution, urban smog and other pollution-

related issues became a major social problem in the US,

Japan and other countries. The US signed the Clean Air

Act of 1970 into law, requiring airborne contaminants in

automobile exhaust be reduced 90% by 1976. Although

many thought such tough standards were unachievable,

Honda took up the challenge. With the development of

the CVCC engine in 1972, it became the first auto manu-

facturer in the world to meet the Clean Air Act’s criteria.

Two decades later, Honda publicly defined its approach

to environment issues with the 1992 Honda Environment

Statement.

As a responsible global company, Honda naturally recog-

nizes its responsibility for the environment. Honda consid-

ers itself a global citizen, and as such continues to act on

its commitment to environmental preservation—for the

good of all, including future generations.

Tackling environmental problems from

a global perspective so future generations

can also experience the joy of mobility

Highlights

Environmental Initiatives

Highlights

Page 6: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1413

Honda FC Stack

Manufacturing solar cells for cleaner energy

Honda began developing solar energy technology as part of its

program to optimize energy savings and reduce automobile-related

air pollution. A non-silicon solar cell was chosen for development

as its manufacture produces less CO2 and consumes approximately

50% less energy than conventional silicon solar cells. Superior pho-

toelectric conversion rates have also been achieved.

Honda’s first step in the practical application of this new type of

solar cell was taken in the spring of 2002 when they were put into

use at twelve research facilities and factories in Japan and three

overseas locations. Valuable data was collected under a variety

of conditions. The next step begins this year: starting in the latter

half of 2006, sales will be launched in a limited area. Then, in

2007, commercial production is scheduled to begin at Honda’s

Kumamoto Factory.

The development of solar cells is not only about creating a

clean energy source. It is also about creating hydrogen, which is

indispensable for the proliferation of fuel cell vehicles. The aim

is widely distributed power generation stations that use solar

cells for hydrogen production. With a vision that extends both to

creating the ultimate clean car and a clean source of energy to

serve as its fuel, the Honda Group is working to make good on its

commitment to the environment.

The Joyful Forest Project:planting hope in the Chinese desert

The Joyful Forest Project is a massive, 30-year undertaking in the

Korchin Desert, within the Autonomous Region of Mongolia in the

People’s Republic of China. Its goal is to use afforestation and agri-

culture to reclaim habitable areas so that people and nature can

productively coexist. The project, which is based on a partnership

between the Desert Planting Volunteer Association and Honda,

began in 2000 with the participation of the local community. To

date approximately 67,000 trees have been planted. In addition

to Honda’s financial support and operational planning, Honda

associates, retirees and their families voluntarily participate in tree-

planting tours. Their objective is to increase awareness among local

school children of the importance of such a collaborative afforesta-

tion effort. But the Joyful Forest Project isn’t just about helping

people plant trees. It’s about transcending national boundaries and

fulfilling our commitment to the next generation.

Fuel cell vehicles:aiming for the ultimate clean car

Fuel cell vehicles are powered by electric motors that run on

electricity generated by the chemical reaction between hydrogen

and oxygen. They use no gasoline, generate no CO2 emissions

and emit only water; they are perhaps the ultimate clean cars.

In 1999 Honda introduced experimental FCX cars equipped with

two different types of fuel cells. It then pursued improvements

in practicality and range. In 2002 Honda acquired certification

from the Japanese Ministry of Land, Infrastructure and Transport.

In the same year, it became the first to receive US government

certification for a fuel cell vehicle. Fuel cell vehicles were delivered

simultaneously to both the Japanese Cabinet Office and the City

of Los Angeles in December of that year.

The Honda FC Stack, a next-generation fuel cell that can operate

at -20°C, was introduced in 2003. June 2005 witnessed the

world’s first leasing of an FCX fuel cell vehicle to an individual cus-

tomer in the US, and Honda continues to make steady advances

toward the large-scale commercialization of fuel cell vehicles.

Since the development of the Civic CVCC engine, Honda has

embraced the challenge of improving combustion technology for

gasoline engines. It has also developed an array of clean power

trains and automobiles, including electric cars, natural gas-

powered cars and hybrids. Honda will continue to move forward

toward cleaner mobility.

Korchin Desert

Next-generation, thin-membrane solar cell panels on Honda’s Wako Building

First Honda FCX leased

to an individual

Two-stroke engines were once the norm in the motorcycle

industry. Then Honda introduced four-stroke engines that

generated less exhaust, delivered superior fuel efficiency

and had a smaller environmental footprint. This is but

one example of how, from early on, Honda developed

environment-friendly products in response to the de-

mands of the day. In the US in the 1960s and in Japan in

the 1970s, air pollution, urban smog and other pollution-

related issues became a major social problem in the US,

Japan and other countries. The US signed the Clean Air

Act of 1970 into law, requiring airborne contaminants in

automobile exhaust be reduced 90% by 1976. Although

many thought such tough standards were unachievable,

Honda took up the challenge. With the development of

the CVCC engine in 1972, it became the first auto manu-

facturer in the world to meet the Clean Air Act’s criteria.

Two decades later, Honda publicly defined its approach

to environment issues with the 1992 Honda Environment

Statement.

As a responsible global company, Honda naturally recog-

nizes its responsibility for the environment. Honda consid-

ers itself a global citizen, and as such continues to act on

its commitment to environmental preservation—for the

good of all, including future generations.

Tackling environmental problems from

a global perspective so future generations

can also experience the joy of mobility

Highlights

Environmental Initiatives

Highlights

Page 7: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1615

A school that provides a life-changingexperience: Eagle Rock School

Just outside the town of Estes Park, Colorado, in the foothills of the

Rocky Mountains, American Honda Motor Co., Inc. established

Eagle Rock School in an effort to further its long-term commitment

of contributing to society in areas beyond the imperatives of the

company’s day-to-day operations. This boarding school accepts stu-

dents who have not experienced success in traditional academic

programs or who do not expect to graduate from high school, but

are passionate about changing their lives. The school does not

assign grades for courses (and therefore there are no failures) and

does not seek to impose restrictions of time or place. The program

is individually structured with an emphasis on students discovering

who they are as individuals, what their dreams are, and what they

need to learn in order to realize those dreams. What is important is

for each of the students to record, express and verify for themselves

what they have learned and how they have grown from their expe-

rience. Through classes and communal living, students learn the

value of visualizing their dreams and working to realize them.

With only 96 students, the school is annexed to an educational

training facility and receives numerous visits each year from those

active in education and related fields. Eagle Rock School’s mission is

to foster young people who have the desire and the determination

to make a difference in the world. The school also hopes to exert a

positive influence on other educators and help plant the seeds of

educational reform.

Honda is striving to extend the pleasures of a mobile lifestyle

to as many people as possible by providing safe, comfortable,

accessible transportation. We seek to provide more opportunities

for people with disabilities to realize their full potential. The

automobile can empower people to participate freely in society,

and special equipment is required to meet the needs of individu-

als with various types of disability. The Honda Techmatic System

was developed in 1976 to help people with disabilities drive

easily and in comfort. This versatile system allows users to select

equipment according to their individual needs. Options include a

manual driving supplemental device, left-foot-operated accelera-

tor pedal, and steering aid knob. In 1981, Honda introduced the

Honda Franz System, a foot-operated driving system for people

with disabilities in both arms. It remains the only such system

available in Japan. (For more information, see p50.)

Extending the pleasure of mobility to everyone:

Honda Techmatic System, Honda Franz System

Hard at work at Honda Sun

A workplace that welcomes people with disabilities: Honda Sun

In 1975, when Soichiro Honda visited Japan Sun Industries—a facil-

ity designed to provide people with disabilities an opportunity to

work and participate more fully in society—he identified with the

motto of its founder: “There are people with mental and physical

disabilities around us, but there is no such thing as ‘disability’ when

it comes to work.” In 1981, Honda Sun Co., Ltd. was founded, and

ever since the company has been engaged in the production of

components for Honda motorcycles, automobiles and power prod-

ucts. In 1995, the Hiji Plant was opened to expand the work oppor-

tunities offered to individuals with disabilities. The factory and resi-

dential quarters are designed to accommodate people with special

needs, allowing even those with more serious disabilities to enjoy

their work and enhance their lives. The facility is also environment-

friendly, and in 1999 attained ISO 14001 certification. In 1992,

Honda Sun R&D Co., Ltd. was established to handle CAD design,

and also conduct research and development related to transporta-

tion and special-needs equipment. Associates are active in

wheelchair marathons, swim-

ming, Paralympics and many

other events.

Honda seeks to be a good corporate citizen and strives

for harmonious coexistence by becoming part of the

communities that host our facilities. Opening our doors

for factory tours, participating in local festivals, leading

clean-up campaigns and fostering the growth of forests

around our facilities, we’re engaging in a broad range

of initiatives.

Since establishing Honda Sun Co., Ltd. in 1981 we’ve

been making an extra effort to provide employment

opportunities for individuals with disabilities. Overseas,

our approach is equally progressive. In 1994, we opened

Eagle Rock School in Colorado, US, to give students

facing challenges a new chance to succeed. In 1998, on

the 50th anniversary of the company’s foundation, a

new corporate vision was defined for our philanthropic

initiatives. We are now redoubling our efforts in the vital

areas of education, environmental preservation and

traffic safety.

Putting down roots in communities

worldwide, and playing our part as corporate

citizens to help build a better tomorrow

Highlights

Corporate Citizenship Initiatives

Honda Techmatic System

Honda Franz System

Highlights

Page 8: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

1615

A school that provides a life-changingexperience: Eagle Rock School

Just outside the town of Estes Park, Colorado, in the foothills of the

Rocky Mountains, American Honda Motor Co., Inc. established

Eagle Rock School in an effort to further its long-term commitment

of contributing to society in areas beyond the imperatives of the

company’s day-to-day operations. This boarding school accepts stu-

dents who have not experienced success in traditional academic

programs or who do not expect to graduate from high school, but

are passionate about changing their lives. The school does not

assign grades for courses (and therefore there are no failures) and

does not seek to impose restrictions of time or place. The program

is individually structured with an emphasis on students discovering

who they are as individuals, what their dreams are, and what they

need to learn in order to realize those dreams. What is important is

for each of the students to record, express and verify for themselves

what they have learned and how they have grown from their expe-

rience. Through classes and communal living, students learn the

value of visualizing their dreams and working to realize them.

With only 96 students, the school is annexed to an educational

training facility and receives numerous visits each year from those

active in education and related fields. Eagle Rock School’s mission is

to foster young people who have the desire and the determination

to make a difference in the world. The school also hopes to exert a

positive influence on other educators and help plant the seeds of

educational reform.

Honda is striving to extend the pleasures of a mobile lifestyle

to as many people as possible by providing safe, comfortable,

accessible transportation. We seek to provide more opportunities

for people with disabilities to realize their full potential. The

automobile can empower people to participate freely in society,

and special equipment is required to meet the needs of individu-

als with various types of disability. The Honda Techmatic System

was developed in 1976 to help people with disabilities drive

easily and in comfort. This versatile system allows users to select

equipment according to their individual needs. Options include a

manual driving supplemental device, left-foot-operated accelera-

tor pedal, and steering aid knob. In 1981, Honda introduced the

Honda Franz System, a foot-operated driving system for people

with disabilities in both arms. It remains the only such system

available in Japan. (For more information, see p50.)

Extending the pleasure of mobility to everyone:

Honda Techmatic System, Honda Franz System

Hard at work at Honda Sun

A workplace that welcomes people with disabilities: Honda Sun

In 1975, when Soichiro Honda visited Japan Sun Industries—a facil-

ity designed to provide people with disabilities an opportunity to

work and participate more fully in society—he identified with the

motto of its founder: “There are people with mental and physical

disabilities around us, but there is no such thing as ‘disability’ when

it comes to work.” In 1981, Honda Sun Co., Ltd. was founded, and

ever since the company has been engaged in the production of

components for Honda motorcycles, automobiles and power prod-

ucts. In 1995, the Hiji Plant was opened to expand the work oppor-

tunities offered to individuals with disabilities. The factory and resi-

dential quarters are designed to accommodate people with special

needs, allowing even those with more serious disabilities to enjoy

their work and enhance their lives. The facility is also environment-

friendly, and in 1999 attained ISO 14001 certification. In 1992,

Honda Sun R&D Co., Ltd. was established to handle CAD design,

and also conduct research and development related to transporta-

tion and special-needs equipment. Associates are active in

wheelchair marathons, swim-

ming, Paralympics and many

other events.

Honda seeks to be a good corporate citizen and strives

for harmonious coexistence by becoming part of the

communities that host our facilities. Opening our doors

for factory tours, participating in local festivals, leading

clean-up campaigns and fostering the growth of forests

around our facilities, we’re engaging in a broad range

of initiatives.

Since establishing Honda Sun Co., Ltd. in 1981 we’ve

been making an extra effort to provide employment

opportunities for individuals with disabilities. Overseas,

our approach is equally progressive. In 1994, we opened

Eagle Rock School in Colorado, US, to give students

facing challenges a new chance to succeed. In 1998, on

the 50th anniversary of the company’s foundation, a

new corporate vision was defined for our philanthropic

initiatives. We are now redoubling our efforts in the vital

areas of education, environmental preservation and

traffic safety.

Putting down roots in communities

worldwide, and playing our part as corporate

citizens to help build a better tomorrow

Highlights

Corporate Citizenship Initiatives

Honda Techmatic System

Honda Franz System

Highlights

Page 9: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

The joy of helping children bring dreams to life: Children’s Idea Contest

The Children’s Idea Contest arose from the idea of helping children

experience the joy of dreaming and the delight of creating. In the

first stage, the contest invites elementary school children from all

over Japan to imagine something they think would be really cool,

draw a picture of it and send it in. Children are free to draw what-

ever they want. The top entries are selected by a panel of judges,

and the children are then invited to make models of their ideas.

Increased participation—from 70 groups and 122 people when it

was first held in 2002, to 4,011 groups and 4,500 people for the

fourth contest in 2005—is just one indication of the event’s grow-

ing success. Honda’s humanoid robot ASIMO, which represents

the realization of one of Honda’s own dreams, visits the schools of

children who win the top two prizes and teaches a special class.

The goal of the contest is to give children the opportunity to expe-

rience the wonder and delight of achieving one’s dreams.

In 2005, the contest expanded to Thailand, and an exchange of

participants between the Thai and Japanese contests will begin in

2006.

In 1954, when the company was barely known outside

Japan, Honda announced its intention to compete in the

Isle of Man TT motorcycle races—then the most prestigious

motorcycle competition in the world. In 1961, Honda

rode to a decisive victory, sweeping the top five places.

Three years later, in 1964, Honda took up the challenge of

Formula One, the pinnacle of international car racing, and

scored its first victory the following year.

Next, Honda applied the lessons of the racetrack to the

development of low-emission engine technology, result-

ing in the 1972 introduction of the revolutionary CVCC,

the world’s first engine to comply with the stringent

requirements of the US Clean Air Act.

To realize the dream of bringing the cartoon character

Astro Boy to life, Honda began exploring the principles

of bipedal locomotion in 1986. By 2000, the two-legged

humanoid robot ASIMO was taking bows worldwide.

More recently, founder Soichiro Honda’s dream of taking

the company into another dimension of mobility was

realized as the HondaJet took to the skies.

Honda has always aimed high, pursuing lofty dreams and

rising to the challenge of fulfilling them—an approach

that has led Honda to some amazing breakthroughs in

mobility. Propelled by the power of dreams, Honda will

continue the work of turning inspiration into reality.

Challenging the limits of mobility: ASIMO, the humanoid robot

Honda dreamed of creating a new form of mobility—a two-

legged humanoid robot—that would live in harmony with people

and offer unique benefits to society. The company began working

on realizing this dream in 1986, when it started its research on

robots. In 1996, while such ideas were still considered fanciful,

Honda developed P2, an autonomous humanoid robot. In 2000,

Honda’s ongoing efforts to enhance the robot’s performance

while reducing its size and weight led to the introduction of

ASIMO, the humanoid robot.

In recent years, Honda has continued to refine ASIMO in the

hope that robots may soon be able to help people in their

homes and beyond. Debuting in 2005, the latest incarnation of

ASIMO is capable of so effectively imitating human movement

that it can actually hold hands and walk with a person—a feat

Honda accomplished by increasing the robot’s sensor count and

enhancing sensor performance. Other physical abilities have also

been improved. For example, ASIMO can now run at a speed of

6 kph—double the speed of previous models.

A new dimension of mobility: HondaJet

Since the company’s foundation, Honda has dreamed of entering

the aviation industry. We first took up the challenge in 1986, begin-

ning research on compact business jets using engines provided by

other manufacturers. In 1993, we conducted the first test flight of

an experimental jet featuring an all-composite body. While continu-

ing the development of a proprietary engine, Honda began design-

ing a highly aerodynamic, fuel-efficient aircraft body, incorporating

advanced Honda technologies in the innovative wing design, the

fuselage and other key components.

Honda then developed the experimental HondaJet, with a ground-

breaking design that features a significantly larger cabin, as well

as fuel efficiency superior to other planes in its class. In December

2003, Honda began test flights of the HondaJet equipped with a

Honda engine, the HF118 turbofan—a double feat rarely achieved

in the aerospace industry.

It is Honda’s dream that ASIMO will truly be of service to human-

kind, enriching the lives of individuals as well as society as a

whole.

1817

Dreams & Advanced Technology

HighlightsHighlights

Advanced technology and inspiration

turning dreams into reality

ASIMO

Experimental HondaJet

Children’s Idea Contest—final judging

The ASIMO Prize—ASIMO visits contest winners’ schools

Winners of the Children’s Idea Contest in Thailand

Page 10: Providing genuine satisfaction to each of our customers in ... · the 8th-generation model. All 8th-generation Civics, including the hybrid version, are equipped with Honda’s most

The joy of helping children bring dreams to life: Children’s Idea Contest

The Children’s Idea Contest arose from the idea of helping children

experience the joy of dreaming and the delight of creating. In the

first stage, the contest invites elementary school children from all

over Japan to imagine something they think would be really cool,

draw a picture of it and send it in. Children are free to draw what-

ever they want. The top entries are selected by a panel of judges,

and the children are then invited to make models of their ideas.

Increased participation—from 70 groups and 122 people when it

was first held in 2002, to 4,011 groups and 4,500 people for the

fourth contest in 2005—is just one indication of the event’s grow-

ing success. Honda’s humanoid robot ASIMO, which represents

the realization of one of Honda’s own dreams, visits the schools of

children who win the top two prizes and teaches a special class.

The goal of the contest is to give children the opportunity to expe-

rience the wonder and delight of achieving one’s dreams.

In 2005, the contest expanded to Thailand, and an exchange of

participants between the Thai and Japanese contests will begin in

2006.

In 1954, when the company was barely known outside

Japan, Honda announced its intention to compete in the

Isle of Man TT motorcycle races—then the most prestigious

motorcycle competition in the world. In 1961, Honda

rode to a decisive victory, sweeping the top five places.

Three years later, in 1964, Honda took up the challenge of

Formula One, the pinnacle of international car racing, and

scored its first victory the following year.

Next, Honda applied the lessons of the racetrack to the

development of low-emission engine technology, result-

ing in the 1972 introduction of the revolutionary CVCC,

the world’s first engine to comply with the stringent

requirements of the US Clean Air Act.

To realize the dream of bringing the cartoon character

Astro Boy to life, Honda began exploring the principles

of bipedal locomotion in 1986. By 2000, the two-legged

humanoid robot ASIMO was taking bows worldwide.

More recently, founder Soichiro Honda’s dream of taking

the company into another dimension of mobility was

realized as the HondaJet took to the skies.

Honda has always aimed high, pursuing lofty dreams and

rising to the challenge of fulfilling them—an approach

that has led Honda to some amazing breakthroughs in

mobility. Propelled by the power of dreams, Honda will

continue the work of turning inspiration into reality.

Challenging the limits of mobility: ASIMO, the humanoid robot

Honda dreamed of creating a new form of mobility—a two-

legged humanoid robot—that would live in harmony with people

and offer unique benefits to society. The company began working

on realizing this dream in 1986, when it started its research on

robots. In 1996, while such ideas were still considered fanciful,

Honda developed P2, an autonomous humanoid robot. In 2000,

Honda’s ongoing efforts to enhance the robot’s performance

while reducing its size and weight led to the introduction of

ASIMO, the humanoid robot.

In recent years, Honda has continued to refine ASIMO in the

hope that robots may soon be able to help people in their

homes and beyond. Debuting in 2005, the latest incarnation of

ASIMO is capable of so effectively imitating human movement

that it can actually hold hands and walk with a person—a feat

Honda accomplished by increasing the robot’s sensor count and

enhancing sensor performance. Other physical abilities have also

been improved. For example, ASIMO can now run at a speed of

6 kph—double the speed of previous models.

A new dimension of mobility: HondaJet

Since the company’s foundation, Honda has dreamed of entering

the aviation industry. We first took up the challenge in 1986, begin-

ning research on compact business jets using engines provided by

other manufacturers. In 1993, we conducted the first test flight of

an experimental jet featuring an all-composite body. While continu-

ing the development of a proprietary engine, Honda began design-

ing a highly aerodynamic, fuel-efficient aircraft body, incorporating

advanced Honda technologies in the innovative wing design, the

fuselage and other key components.

Honda then developed the experimental HondaJet, with a ground-

breaking design that features a significantly larger cabin, as well

as fuel efficiency superior to other planes in its class. In December

2003, Honda began test flights of the HondaJet equipped with a

Honda engine, the HF118 turbofan—a double feat rarely achieved

in the aerospace industry.

It is Honda’s dream that ASIMO will truly be of service to human-

kind, enriching the lives of individuals as well as society as a

whole.

1817

Dreams & Advanced Technology

HighlightsHighlights

Advanced technology and inspiration

turning dreams into reality

ASIMO

Experimental HondaJet

Children’s Idea Contest—final judging

The ASIMO Prize—ASIMO visits contest winners’ schools

Winners of the Children’s Idea Contest in Thailand